BITCOIN Volume Climax Might Signal Support Bottom

One of the things that we look for is volume climax. This matters in both bullish and bearish scenarios. In the current market, we could have just experienced out volume climax. If this holds true for BTC, we may have hit our higher low (barely), with prices bouncing off of $6,130.

Unfortunately, all of the other crypto's made lower lows on the daily that just closed. This signals the down trend in tact for the alt's. However, there is the correlation we could be piggybacking on BTC still due to the correlation. If we do see the bounce play out now, we are likely to see a rally.

The pullback has been intense! A pullback from mid $8,000's was a move over 25%. A move to that level on the upside now will be about a 33% gain.

When we pulled back and bounced off of $6,130 today, we saw the daily RSI level hit oversold. The 4-hr RSI has been getting pounded along with all of the other time charts. Last time RSI's were like this, we saw only a small bounce and prices gained $500 on the move from $6,300 to $6,800.

Stochastic RSI has been smashed against the floor on the daily, and we are needing a bullish cross to bounce and pick us up.

Long story short, the volume climax's typically signal a peak or bottom. If this can be true and we see a bounce or consolidation, we could have a little bit of movement up. We are still bearish though so we can pullback more longer term until all of the trends prove they are changing. Holding the support as a higher low (currently) is one of the signs.